On 22 January 2025 Regulation (EU) 2025/40 of the European Parliament and of the Council of 19 December 2024 on packaging and packaging waste (“PPWR“) was published in the Official Journal of the Union. PPWR obligations will apply on a gradual basis with the first obligations applicable from 12 August 2026. PPWR represents another step towards the goal of a sustainable Europe and is an integral part of the European Green Deal and the EU Circular Economy Action Plan. Despite its potentially misleading name, this regulation extends beyond waste management governing the full life cycle of packaging, with obligations ranging from packaging design to its recyclability and reuse. Therefore, this regulation will directly impact the entire supply chain and will require a review and assessment to determine if changes need to be made. Crucially, the Regulation contains progressive targets for reducing packaging waste, requiring Member States to achieve, as compared to 2018, a 5% reduction by 2030, a 10% reduction by 2035 and a 15 % reduction by 2040.
The PPWR will replace Directive 94/62/EC on packaging and packaging waste, in line with the EU’s latest trend of transforming Directives into Regulations to ensure a higher degree of harmonization across the different Member States. PPWR will apply to all types of packaging placed on the EU market and across all product sectors. We have summarized some of the key features of PPWR below.
Labelling, marking and information requirements include:
- Provision for the creation of the so-called “harmonized label” with the aim of imposing standard and homogeneous symbols for all Member States on the material composition of packaging to facilitate its sorting once it becomes waste. This provision aims to put an end to the current situation in which several states (such as France, Italy, Portugal and Spain) have their own, varying labelling requirements, which, besides being confusing for consumers, have the potential to conflict with the EU’s environmental goals (as the variety of labels across different countries potentially requires larger packaging surfaces/more versions of packaging, leading to increased packaging waste). To make such homogenization possible, the new PPWR also provides for a new regulation relating to the labelling of waste receptacles used to collect waste packaging.
Sustainability requirements include:
- Requirements for all packaging to be recyclable.
- Minimum percentage requirements for recycled content in plastic packaging from 1 January 2030, increasing substantially from 1 January 2040. However, exemptions from these targets are made for compostable plastic packaging and packaging whose plastic component represents less than 5% of the packaging’s total weight.
- Restrictions on certain chemicals (including PFAS) being used in food contact packaging.
- Compostability requirements for certain packaging items (including labels on fruit, very lightweight plastic bags, and tea and coffee bags or pods).
- Obligations to reduce empty space in packaging to the minimum necessary.
Note, packaging compliance with the PPWR must be proved through an EU declaration of conformity. In other words, similar to other products, packaging manufacturers will be required to prepare an EU declaration of conformity to demonstrate that packaging complies with the sustainability, labelling requirements and standards required under PPWR.
Re-use targets and re-fill obligations include:
- Minimum percentage targets for the re-use of a number of types of packaging by 2030 with indicative targets for 2040. These targets cover certain types of transport and sales packaging, grouped packaging as well as sales packaging for alcoholic and non-alcoholic beverages (with exclusions for wines, milk and certain other beverage types). Note, cardboard packaging is generally exempted from the aforementioned requirements.
- An obligation on businesses serving take-away food and drink to offer customers the possibility to bring their own food and beverage containers to be filled at no extra charge.
- An obligation for take-away businesses to endeavour to offer 10% of products in re-usable packaging from 2030.
Provisions for deposit return systems (“DRS”) include:
- Requirements for member states to set up a DRS (to the extent that one is not already in place) and collect at least 90% of single-use plastic bottles and metal beverage containers by 2029.
Restrictions on certain single use plastic packaging formats including:
- Packaging for fruit and vegetables, packaging for food, beverages and condiments within the HORECA sector, packaging for small cosmetic and toiletry products used in the accommodation sector (e.g. shampoo or body lotion bottles), and for very lightweight plastic bags (e.g. those offered at markets for bulk groceries). These restrictions will add to the restrictions on single use plastic already provided in the Single Use Plastics Directive.
Revised Extended Producer Responsibility (EPR) regime:
- The new Regulation will introduce a more harmonised framework for EPR requirements across the EU. The existing Directive lacked detail on critical EPR concepts leading to uneven implementation between different Member States. The new rules, including the new “producer” definition, should help ensure a more consistent implementation for businesses operating in multiple Member States. Businesses will still need, however, to comply with EPR obligations for packaging on a Member State by Member State basis.
Remarks
In summary, the PPWR marks a major shift in European sustainability policy, bringing significant innovations with implications for all market participants and directly impacting the product supply chain. The new Regulation proposes a series of important obligations and timelines for their compliance, starting from the design phase of the packaging. Overall, PPWR will affect the entire life cycle of packaging, imposing obligations and challenges for all companies involved in the production and marketing of packaging or packaged products.
With the text now published in the Official Journal, businesses now have clarity on the relevant deadlines that will apply to the raft of new packaging-related obligations. However, the Commission has been empowered to adopt a number of Delegated and Implementing Acts over the coming years providing for further detail on these new requirements, so it will be critical for businesses to monitor and engage with the development of these where relevant to their activities.
Baker McKenzie will publish a more detailed assessment of the new requirements under PPWR in due course. For more information or if you need individual advice for your company, please contact our team of experts.
